Archive for the ‘ETS News’ Category

Specialty Tax Expert Peter J. Scalise Joins Engineered Tax Services as National Tax Practice Leader and Executive Managing Director

Engineered Tax Services (ETS) is proud to announce that specialty tax expert Peter J. Scalise, B.S., M.S. is now National Tax Practice Leader and Executive Managing Director, serving out of the New York office. Peter has over 15 years of progressive public accounting experience developing and leading multi-million dollar tax practices on both a regional and national level for the global Big 5 CPA Firms.

Prior to joining ETS, Peter developed and led a $ 5.5 million dollar tax consulting practice in the Northeast for a Big 5 firm. Peter is a highly acclaimed thought leader in the fields of accounting and taxation who is well published in the areas of taxation, financial accounting pronouncements and international financial reporting standards. He has successfully advised clients ranging in size from leading middle-market to Fortune 100 companies on the Research Tax Credit, with tax savings ranging from approximately $100,000 to well over $100 million per client.

Peter’s thought leadership in connection to the research tax credit encompasses all aspects, including assistance with technical issues; designing, implementing and defending multi-year look-back research tax credit studies (i.e., both pre- and post-IRS Tier 1 Audit Directive); and the identification of exposure items for purposes of ASC 740 and FIN 48. He has also overseen the automation of clients’ research tax credit information-gathering processes across a diverse group of industries including, but not limited to, Aerospace & Defense; Technology Companies including Software and Electronics; Global Manufacturers; Telecommunications; Transportation; Energy, Natural resources, and Chemicals; Food Science; Life Sciences including Bio-Technology, Pharmaceuticals, and Medical Devices; and Financial Services for 3rd party sale, lease, license, software and internal use software development.

“We are incredibly excited to have Peter as part of the ETS team,” said Julio Gonzalez, CEO. “His experience and knowledge fit perfectly with the exceptional service and ability our clients have come to expect. Peter’s expertise is an outstanding additional service that we are now able to provide our clients from which I know they will see great results.”

About Engineered Tax Services

Engineered Tax Services (ETS) is the only qualified professional engineering firm that has its own licensed engineers, including LEED Accredited Professionals, as well as tax experts, from CPAs to a former senior IRS executive, on staff. ETS marries the science of engineering with the principles of tax and accounting to arrive at financial solutions that result in increased cash flow, minimized tax payments and maximum return on investment and energy. These IRS-sanctioned services include Energy Tax Credits, Energy Policy Act Certifications (179D Studies), Cost Segregation Studies, Research and Development Studies, Repair and Maintenance Studies,  Historic Tax Credits Studies, Engineering Insurance Appraisals, Energy and Carbon Audits. For more information visit http://engineeredtaxservices.com.

Peter’s announcements were also distributed through the industry through the following links

http://www.newswiretoday.com/news/110703/

http://www.onlineprnews.com/news/224615-1335300474-specialty-tax-expert-peter-j-scalise-joins-engineered-tax-services.html

http://www.pressreleasepoint.com/specialty-tax-expert-peter-j-scalise-joins-engineered-tax-services-national-tax-practice-leader-exec

http://www.prhwy.com/news/44631-specialty-tax-expert-peter-j-scalise-joins-engineered-tax-services-as-national-tax-practice-leader-and-executive-managing-directo.html

http://www.widepr.com/press_release/38464/specialty_tax_expert_peter_j_scalise_joins_engineered_tax_services.html

http://www.theopenpress.com/index.php?a=press&id=139088

http://www.free-press-release.com/news-specialty-tax-expert-peter-j-scalise-joins-engineered-tax-services-as-national-tax-practice-leader-and-executive-managing-director-1335294560.html

http://financialservices-cj.blogspot.com/2012/04/google-alert-tax-services_2421.html

http://www.zimbio.com/member/aliceadams/articles/-6CqTh3Z1nh/Specialty+Tax+Expert+Peter+J+Scalise+Joins

http://www.prlog.org/11858113-specialty-tax-expert-peter-scalise-joins-engineered-tax-services.html

This is the latest video from ETS, helping you become the Green Energy Tax Hero.

Click on the small arrow to play.

If you are looking for further information on the Energy Tax Benefits, click here.  If you would like to register to attend one of our free webinars on 179D Energy Tax or 179D Energy Tax with a lighting focus.  Visit our Facebook Events page.    Questions are also answered by contacting one of our directors on 800.236.6519

Dallas CPA firm generating $345,000 and 4 new clients

Charlotte CPA firm generating $282,000 and 3 new clients

Seattle CPA firm generating $276,000 and 3 new clients.

Whether you are a regional or growing city firm, we all look for ways to grow our business.

It costs more to locate a new client than it does to retain a current one.   Client’s, especially in this tough environment are looking for a provider/supplier, in all they do, who will value add to their business, to help give their business that competitive edge and more over, financially survive.

The US Government and the IRS, provide a wealth of options to CPA’s to be able to deliver just that to their client.  The key is to identify what option you can consider would value add to your client base, with minimal time usage on your behalf.  In another words, how to increase your ROI and your clients, if you take on additional value added services.   Many big 5 firms have in-house teams offering these value added government tax incentives.

Did you know though, that  these services are also available to you for your clients, through companies like ETS; we supply specialty tax consulting services that you could not provide on your own.

A short list of these services include:

EPAct Certifications for Energy Tax Deductions

Repair and Maintenance Studies

Research and Development Tax Credits

Cost Segregation

In each case there is a substantial investment in resources and education.  Our (ETS’s) R&D department has almost a dozen professionals from CPAs to Attorneys.  You are unlikely to hire a staff this robust  to meet you client needs, but you can utilize ours and access them as your own.

Each of the other specialties has similar staffing.  Why not take advantage of  these resources and not re-create the wheel, and avoid the increases in overhead and fixed costs?

This is the check list on how to strategize on identifying the right value added tax options your firm should use, and how to do it right;

1. Don’t do it on your own. Spending all your time researching each tax law which you would like your firm to implement is not a good use of your time or the most effective way of implementing that service.  Tax laws change all the time and it would be impossible for you to keep up with the laws and do you clients or firm justice.

2. Do what your clients are doing. Your clients are asking for providers and suppliers to value add to their company and so you too should be seeking out providers and suppliers to value add back to your firm.  There are many external providers specialized in tax areas, who offer a service which you could implement into your firm.

3. Educate yourself. Before you start knocking on doors to any and every provider in the tax arena, start researching what specialty tax your firm does not offer, and identify if it is one that you should.  There are countless webinars, articles and websites that offer information on specialty tax, to give you a hint as to how it will be a “value add” to your firm and your client’s.

4.  Research your providers. Your clients and you deserve a reputable provider, especially since they will form part of your trusted advisor team.  Do your due diligence.  Questions you may like to ask:

• Who do they or have they worked for (other CPA firms and clients)
• How long have they been in the industry
• How up to date are they with their taxation laws in their specialty area
• Have they encountered an IRS audit, how did they manage that, what is their success rate and will they stand behind you
• Do they have the resources to perform the job for you and do so in a timely manner
• What materials can the provider offer your firm to offer to clients
• How many specialty services do you offer and offer successfully

5. Signing up with your Provider. Entering in an agreement with your provider will allow both of you to understand what to expect, and form a trusted relationship.

6. Introducing the specialty tax into your firm. Armed with a new service, the next step is to train staff on the new product offering.  The provider should be able to provide training and marketing material to assist staff with the new tax offering.  You, in turn, will be supporting the new offering with a pricing schedule, which you have prepared, for staff to run by.

7. Introducing the new specialty tax to clients. Data mining (researching and reviewing through your existing client base) to locate the appropriate clients, is an essential tool to ensuring your ground work was successful.  Then, before you approach your identified client(s), contact your specialty tax provider, give him basic details on the client.

For example, your client has a building, and your specialty tax provider has a tax benefit for building owners.  By providing your provider with basic information, they should be able to provide you with an estimated tax benefit, based on their experience.

With this information, you can contact the client, provide them with a brief on how you are about to increase their cash flow.  Provide the client with information on this tax benefit, and if needed, you can provide marketing material to the client as well, but most importantly show the client the tax benefit estimated analysis he would likely be looking to receive.  You may have even saved a client from becoming a victim of the economic down turn, and subsequently not lost the client.

8. Go the extra mile. Does the new tax service offer benefits that your client could implement, but because they don’t know, just doesn’t.  Take the Energy Tax, for example.  If your client spent money upgrading their lighting system, to be energy efficient, they could take advantage of the 179D Energy Tax benefits for lighting, Abandonment tax benefits, Depreciation tax benefits and State tax benefits.  Additionally, the electric bill just went down.  Here is one example of a client property;

A distribution company with a warehouse of 250,000 square feet, upgraded all lighting.

Cost $140,000

EPAct $140,000

Abandonment $90,000

Annual Energy Saving $60,000

First Year Net After Tax +$500

Five Year Benefits $300,500+

-$450,000 + the increased cost of energy

- Zero Net Cost the first year

10. Outcome. Your client, has just realized your valuable worth, even more than previous, as you have just added to their bottom line.  Your time in investing to locate a suitable provider, has proven beneficial.  Your client is undertaking these new tax benefits, you are paid for these new services, your firm has just increased spending from this client to provide your firm with increased ROI.

To manage this client’s new tax benefit, is minimal as your provider is doing all the work.  As an example, If you charged your client $3,500 for the above service, and you implemented this service with 10 clients, $350,000 would be generated by the firm over the year.

11. New clients. How do you market your firm’s progress and obtain new clients.  It is simple – Talk about it.

• Ask existing clients to refer you – they will be happy to after you just saved them in energy money and through tax benefits
• Update your marketing materials – online, and in print.  Promoting the fact that you find ways to increase your client’s bottom line and reduce corporate taxes, and use case examples (anonymously).
• Target clients.  Identify client’s you would like to have and introduce your company and service.
• Align with Angel Investors or Venture Capitalist.  They are the ground floor for growing companies

12.  How to start a specialty tax revenue stream and ensure it is successful. Realizing there is a need for CPA’s to be able to provide a value added service to their clients, ETS has teamed up with Boomer Consulting, to offer a program especially to assist firms to implement a successful specialty tax offering to their clients and build significant revenue into their firm.

With this support, you can navigate the business growth plan in a more efficient and successfully proven path.  This program is selective in size and CPA firm location, as the program is highly educational and works on proven results.  The Specialty Tax Circle helps firms through each step of the way in firm growth and specialty service offering with further support through the year to ensure the investment in education is providing the returns to your firm, which it promotes.

The training program covers data mining and what to identify, RFP proposal request writing, provider assessment, pricing out your provider services, training staff on your new services, effective marketing of your new services, projecting and obtaining revenue growth, driving new client business through the specialty tax and implementing the service in a timely and cost effective manner.

There are two round table educational meetings in 2012.  The first is July 17 to 18, 2012 in Kansas City

For information on the Specialty Tax Service, visit http://www.boomer.com/?page=SpecialtyTax

or call Eric Hunt on 785-537-2358 extension 119.

On a closing note, good luck with your business growth strategy, may you reap the benefits of your planning and implementation programs.

This article was written by Julio Gonzalez, CEO, Engineered Tax Services.

You can contact Julio on 561.253.6640

By L. Gary Boomer

Accounting firms generally are not who you think of when you mention “innovation,” yet many firms excel at innovation and there is a pattern to their success. Innovation is directly linked to growth and not an epiphany like many think; but rather a process that combines hindsight, vision and insight. The accounting profession is going through significant changes and I am often told by firm leaders they just don’t have the next generation of leaders in their firms.

In many cases there is validity to their statement and a better understanding of innovation and how firms get into this situation can help firms take the necessary steps to balance between “discovery” and “delivery” skills. Discovery skills focus on new opportunities, trends and creativity while delivery focuses on execution. You need both, but the tendency is to focus on delivery.

Mature and typically declining firms are dominated by people with excellent delivery skills, but often lack the proper balance of discovery skills. Typically, one or more firm founders were entrepreneurial and tended to hire people for their delivery skills and not their discovery skills. As a result, many partners and managers don’t know how to think about discovery or give enough value to the importance of innovation.

Accounting programs teach people delivery skills while most experiences and on-the job training also focuses on delivery and execution. In fact, many of the discovery skills are viewed as nonproductive – more about that later. I believe innovation or lack thereof can explain some of the frustration and what firms must do in order to develop the next generation of innovative leaders.

DIRECTIONAL VS. INTERSECTIONAL

Let’s look at two different types of innovation and then how the most successful firms are modernizing their practices to meet the needs and wants of their clients. Accounting majors are taught the rules and regulations of the profession in school and throughout their careers. This is not a negative, but rather a fact as their perception is often different than those with different training and aptitudes. Upon graduation, most accountants going into public practice start in audit and/or tax. This has been the traditional approach and is the primary reason most innovation in firms is directional innovation. Directional innovation tends to improve a service in fairly predictable steps with a well-defined dimension or goal. The majority of innovation is directional and is accomplished through increasing levels of expertise and specialization (delivery skills). This is a low risk approach and one with which many CPAs are comfortable. There is nothing wrong with directional innovation, yet it is limiting due to the fact most of the participants are looking at the problem from the same perspective.

Darwin John, former CIO at the FBI once said “if two of you have the same opinion, then we don’t need one of you”. This may be a bit extreme, but the point is that for real innovation (discovery) to occur it requires multiple perspectives. This is often called intersectional innovation where multiple disciplines meet in the attempt to solve a problem or improve a solution. From my experience in the CPA profession, two areas within firms that have been responsible for innovation over the past 20 years are firm administration and technology. Leaders in these areas have been attempting to bring the silos together and improve performance through improved communications, efficiency and effectiveness.

One step in entrepreneurial innovation and the one leading firms are focusing on is intersectional or client-centric innovation. It not only involves the client, but his multidiscipline advisors. This can be difficult due to egos and personalities, but the CPA is the most trusted business advisor and should take his or her role seriously by acting as the quarterback when it comes to innovation and improved client services.

While many CPAs were trained to be rugged individualists (with an intense focus on delivery) and solve the clients’ problems on their own or with a small team, that approach no longer meets the needs of a majority of clients today.

SERVICES COMMODITIZED

Today, clients are looking for faster, better, cheaper and easier solutions forcing firms to be innovative and sensitive to clients’ wants and needs. The capturing of transactions is becoming a commodity with new technology and the ability to aggregate and integrate information via cloud based solutions. In the past tax return preparation has involved a significant amount of time (fee) in aggregating data while technology has automated the calculation and processing of the return. In other words, the CPA is now caught in a situation where the services they are offering are diminishing in value (commoditization). Part of this is due to technological innovation and part is due to the pricing strategies used by the majority of firms (hours times dollars labor theory of value).

We are living in a connected world and someone is making those connections. As the trusted business advisor it should be you, the CPA, and your firm. The people making these connections tend to be professionals who excelled in one field, but learned from others. This describes many CPAs and why they are the most trusted business advisor. Formal education increases the probability of attaining creative success to a point and then actually reduces the odds. A key to prolonged success throughout ones career is lifelong learning and multiple experiences. It makes sense to spend time on a variety of projects if you wish to develop fresh and groundbreaking ideas. The value comes from being able to spot trends and then integrate what you already know. This requires curiosity and an interest in a variety of things. Innovators don’t produce because they are successful, but they are successful because they produce.

GROUPING INNOVATION

Diversity promotes innovation while too much expertise can create barriers to innovation. Innovation requires a balance. More good ideas come when working in a group than when working independently. The big question becomes: What can and should firms do to promote innovation at the inter-section? As I said earlier in the article, innovation occurs with vision, hindsight and insight. By looking at the current generation of great firm leaders we see several characteristics that allowed them to be innovative. Let’s looks at a list of the most important discovery characteristics.

1. The ability to connect and associate different perspectives (clients, multiple advisors, trends, technology and etc.)

2. The ability to question the status quo.

3. The ability to hold self and others accountable.

4. The willingness to participate in “safe haven” meetings with peer leaders.

5. The ability to manage, not avoid risk. The quantity of new ideas improves the quality. Create the environment to promote, not stifle innovation.

This list may not seem important to those who focus only on the delivery side. Firms must be cautious not to swing the pendulum too far toward the delivery or discovery skills. Both skills are required, important and cannot be ignored. Success today requires a team. The team should involve younger members who are capable and expected to challenge the status quo or strategy, which has often been developed and implemented by senior leadership.

The fact is most large organizations generally fail at disruptive innovation because top management has been selected for their delivery skills. While it is the managing partner or CEOs role to lead the innovation it is an extremely difficult assignment. Delivery executives do not like having the strategy constantly challenged nor do they appreciate change. Does your firm reward and promote discovery skills? If the answer is no, you have your answer as to why you don’t have the innovative leaders for the future. Now is the time to identify and develop leaders with the skills and willingness to focus on intersectional innovation. The future success of your firm depends upon innovation.

AN INNOVATION CHECKLIST

Here are five areas where innovation will produce significant results. Granted they may not fit every firm, but most firms will find three or more of these innovative ideas profitable.

1. Billing and collection policies – use technology to improve cash flow (ACH payments & credit cards). This requires different thinking and change management. Too many firms are allowing clients to treat them as interest free or “cheap” banks. You can turn this around with improved engagement letters that specify payment terms leveraging monthly bank drafts.

2. Tax return preparations processes – avoid loops and focus on one-way workflow. There are better ways to train than sending work back to the preparer. You can use technology to grade performance and report errors. Current workflow software has its roots with outsourcing companies. If Federal Express can track packages electronically, firms should be able to track work in an efficient manner reducing cycle time.

3. Client accounting in the cloud – firms can provide transactional as well as value added services such as bill payment, payroll, controller, human resources, IT and CFO-related services on a monthly basis. Private labeled software that can be centrally updated and supported will allow firms to take back control of accounting. It will also allow your firm to become hardware agnostic. It works the same on Mac as on a Windowsbased PC via a browser.

4. Use portals to aggregate client data for auditing and accounting as well as tax return preparation. Avoid false starts and wasted time. Portals provide security, are inexpensive and clients like them. Most of the resistance I see is within the firm.

5. Conduct client focus groups with marketing, tax and technology expertise present. This will provide innovation at the intersection from multiple perspectives. Listen to the client and provide the services they want. Utilize firm leaders with discovery skills.

Innovation is part of a firm’s culture and DNA. It requires leadership and the willingness to manage risk. Not every idea is a great idea, but the quantity of ideas determines quality. Successful firms balance discovery and delivery skills. Does your firm have the discovery skills necessary to meet your clients’ demands in a rapidly changing world? Provide your people with the time and resources to innovate. Based upon recent studies, most firms are less than 50 percent chargeable. What better use of the nonchargeable time than innovation, training and new business development?

Gary Boomer, CPA, is the president of Boomer Consulting, in Manhattan, Kan. Gary can be contacted at lgboomer@boomer.com or

call: 785-537-2358 ext. 112.

http://www.boomer.com/?page=GaryBoomer.

To learn more about Boomer Consulting – www.boomer.com

By Cindy Lucas

I like to think of it as a gift with purchase. A cost segregation study identifies and reclassifies real property to personal property. Think about your building as a dollhouse, now pick it up and turn it upside-down; everything that falls out is personal property, meaning it can be removed.

Traditionally commercial real-estate is depreciated straight line method over 39 years. Well the truth is that nothing in that building is going to last 39 years. Components like carpeting, pluming, and furniture even down to the wiring in electrical systems should be reclassified. The IRS has released the Audit technique guide, which serves as a reference for an engineering company to allocate these components to 5, 7 or 15 year lives.

What that means is cash flow to the property owner. The typical benefits of a cost segregation study are 7-10% of the purchase price or build cost realized back to the owner within the first five years. Some aggressive CPA firms may be doing some safe methods of accelerating their clients’ depreciation but in no way can achieve or justify the level of benefit that can come from an engineering firm who specializes in this. Afterall, how would a CPA know what your insulation would cost to replace?

Speaking of replace brings me to the insurance aspect. An Engineered Cost Segregation Study gives the ability to substantiate the replacement costs to the insurance carrier. This enables an insurance agent to go to their underwriters for the most aggressive pricing. The underwriter will have a very high comfort level of the risk due to the comprehensive building review in their file.

What if something happens to your building? I am sure we have all played the insurance game and it can be quite frustrating trying to collect for what you need to replace or repair.

A cost segregation study can serve as a substantive document that an owner can use as support to a claim that is being disputed to their favor. The depth of our reports helps an owner to avoid the need to hire a third party professional to justify their claim.

To an underwriter this becomes a disclosure safeguard whereby at time of claim the owner is able to substantiate a full disclosure position with the insurance adjuster which puts the onus on the carrier to pay!

For more information please feel free to contact me directly at 954-439-1671 or email clucas@engineeredtaxservices.com
Cindy Lucas
Director
Engineered Tax Services

May 30 – June 2, 2012

Bellagio Las Vegas

MGI is a worldwide association of independent auditing, accounting and consulting firms. Established over fifty years ago, MGI is now represented in over 265 offices on all continents, and in more than 80 countries throughout the world.

Join Kimberly Merrill at the 2012 MGI North American Area Meeting. Learn how ETS can assist you with specialty tax benefits to increase the ROI in your client’s business. Specialty tax benefits include Green Energy Tax Deduction, Research and Development Tax Credit, Repairs and Maintenance Studies, Cost Segregation Studies, Energy Star Benchmarking and Certification and more. For details click here to visit the registration website.

Green By Designs Seminar

June 6, 2012

Town Center City Club – Norfolk, VA

Join Norbert Crabtree as he presents the popular and informative Green By Designs – Energy Tax Benefits Presentation at this lunch and learn, hosted by Strickland and Jones. Norbert can also assist you to learn how ETS can assist you with specialty tax benefits to increase the ROI in your business.  Specialty tax benefits include Green Energy Tax Deduction, Research and Development Tax Credit, Repairs and Maintenance Studies, Cost Segregation Studies, Energy Star Benchmarking and Certification and more.  For details call James V. Strickland, CPA.  on 757.627.7672

Tax Strategies To Increase Building Cash Flow

May 10, 2012

One Riverway, Suite 1000 | Houston, Texas

Join Mark Barbour as he presents the popular and informative presentation for building owners – Tax Strategies To Increase Building Cash Flow over lunch, hosted by Harper Pearson, P.C.. Mark can also assist you to learn how ETS can assist you with specialty tax benefits to increase the ROI in your client’s business.  Specialty tax benefits include Green Energy Tax Deduction, Research and Development Tax Credit, Repairs and Maintenance Studies, Cost Segregation Studies, Energy Star Benchmarking and Certification and more.  For details call Mark Barbour on 310.383.1302.

ASHRAE Lubock Texas Chapter

April 19, 2012

Join Chris Ostler as he presents the popular and informative Energy Tax Benefits Presentation at this lunch an learn. Chris can also assist you to learn how ETS can assist you with specialty tax benefits to increase the ROI in your client’s business.  Specialty tax benefits include Green Energy Tax Deduction, Research and Development Tax Credit, Repairs and Maintenance Studies, Cost Segregation Studies, Energy Star Benchmarking and Certification and more.  For details call Chris Ostler on 702.525.8154

BuildingsNY Conference and Expo

May 2 – 3, 2012

Javits Center, NY, NY

Join Michael D’Onofrio, presenter at Green To Gold Finance and Incentives Panel, May 2, 2012, 10.15 – 11.15am. Also Visit Peter Scalise and Michael D’Onofrio of ETS at our booth number 757. Learn how ETS can assist you with specialty tax benefits to increase the ROI in your client’s business.  Specialty tax benefits include Green Energy Tax Deduction, Research and Development Tax Credit, Repairs and Maintenance Studies, Cost Segregation Studies, Energy Star Benchmarking and Certification and more.  For details click here to visit the registration website.